Creditors call for Altheimer liquidation to reclaim $1.3m

It may be trying to bow out quietly, but collapsed Chicago firm Altheimer & Gray has been hit with one last indignity – bankruptcy.

A group of four unsecured creditors, including its landlord Equity Office Management, have filed for Chapter 7 bankruptcy proceedings against the law firm, which closed it doors to business in July.
The creditors claim that the defunct law firm owes them $1.3m (£778,000), in-cluding $169,000 (£101,000) related to its lease obligations. The filing to liquidate the partnership means that the firm’s partners could become personally liable if the monies owed exceed Altheimer’s assets.
Altheimer set up its own liquidation committee to handle the financial implications of its collapse, including its debt of $30m (£18m) to it largest creditor, LaSalle Bank. Included in the group of unsecured creditors is JP Morgan Securities, Alps Construction and Joyce Brothers Storage & Van Co.

Altheimer, which is being represented by Winston & Strawn, is attempting to have the Chapter 7 bankruptcy petition dismissed.

The firm has been making some progress in raising money to pay back those it owes, including $1.8m (£1.1m) from the ‘sale’ of a group of its Central and Eastern European offices to Salans, as well as its chattels from its Chicago office.